Category Archives: Politics

The Next Sub-Prime Mortgage Crisis – We Have Learnt Nothing

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Some lessons are never learned and the boom and bust of the housing market is one of them. As we finish one housing crash we are already setting ourselves up for the next one. The seeds for the next sub-prime mortgage crisis have already been sown.

It stems from a desire by all parties to encourage people to buy their own homes and keep house prices going up. This results in an unsustainable boom followed by a sharp correction, all to the detriment of stability and economic growth.

Everyone from the building companies, estate agents, mortgage brokers, banks, government, owners and even buyers all want to see the market rise. Prior to the crash we had mortgages being offered for 120% of a home’s value. We now have offers encouraging people to buy houses which are equally or more dangerous.

The reality of the situation is that house buyers (particularly first time buyers) are not earning enough to get onto the housing ladder at the moment. There simply isn’t the demand.

Desperate to sell the houses on their books, Estate agents and builders have been offering shared equity solutions to first time buyers. The buyer only buys a percentage of the property (making it more affordable and much easier for them to get a mortgage). They then pay rent to the building company on the percentage they do not own. The scheme is all over housing websites. The government has been encouraging this scheme. In fact it is taking part in it.

On the face of it the scheme looks attractive. I admit even being interested in it myself initially. However once you understand the motives behind it and the reality of it we see how dangerous it can be.

You can see how it can become very expensive for someone who takes on this scheme. They are paying a mortgage, rent and service charges, not to mention maintaining 100% of a property they don’t fully own.

Many newspapers were initially very critical, until building companies started taking ads out in their papers advertising the scheme.

The service charges and rent often rocket and the homes are almost impossible to sell leaving owners completely trapped even when they need to move in an emergency. You can read some people’s nightmare experiences here.

Now, in what can only be described as utter madness, the UK government’s latest plan is to guarantee 95% mortgages. The ‘New Buy’ or mortgage indemnity scheme (MIG) only requires a 5% deposit from the buyer and if they default the government will pick up the tab along with the bank.

The government is trying to artificially inflate demand in the short term to boost the construction sector and push house prices up so everyone feels wealthier. This should also boost consumer spending and the economy as a whole. But this is a typically short term politically motivated view. The current government cares nothing for a future crisis which might occur in 10 years’ time. At some point the market will have to correct to an equilibrium level and the more we inflate prices artificially the bigger that crash will be. All the jobs created will be lost along with many more as well.

Nothing has been learnt from the recent crisis. With a government guarantee, banks and mortgage brokers will be flogging mortgages to anyone they can. This is exactly what happened before the recent crisis in America. Just look at Fannie Mae and Freddie Mac.

When prices do start to fall owners will have no incentive to keep paying their mortgages as they move into negative equity. If house prices fall by 20% and you have only put down a 5% deposit what incentive do you have to keep paying the mortgage? As prices continue to fall this gets worse and turns into a negative cycle.

When the bubble does burst the ensuing crisis will be just like the recent one, except this time instead of the banks bearing the brunt of the loses, it will be the you and I the taxpayer.

Unfortunately we never learn from our mistakes. We must stop creating these damaging bubbles. We should just let the housing market correct itself naturally; unfortunately the government just can’t help itself. It is now just a matter of time before the next major sub-prime mortgage crisis. I just hope we can survive the fallout.

Women of The Revolution – Book Review.

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The idea behind this book is incredibly clever, it is the history of forty years of feminism told through articles from The Guardian. The book was edited by Kira Cochrane who Frost have interviewed. The wealth of talented women in the book is staggering. Maya Angelou, Germaine Greer, Oprah Winfrey, Suzanne Moore, Beth Ditto…the list is endless. It is a fascinating read for women and men alike.

I didn’t like, or agree, with every single article or argument, Lesbianism as a choice and not sleeping with men, because they are the enemy spring to mind, as does ‘are all men capable of rape’. Er, no, they are not.

Beth Ditto gives amazing and funny advice on what to do with catcalls, Andrea Dworkin’s piece on Bill and Hillary Clinton is perfection, and right on. The interview with Maya Angelou is also amazing, she is one of my favourite writers. Germaine Greer comes across as Germaine Greer, people can say whatever they want about her, but she doesn’t seem to care about being liked, and that makes her a true feminist to me.

One of my favourite things about the book is just how many strong women are in it. Suzanne Moore interviewing Camille Paglia, there is an interview with Toni Morrison, Zoe Williams ask if feminism is embarrassing, Julie Burchill writes about her lack of regret for her five abortions. This book shows how far we have come, but also shows our faults, the fault of feminism is that people have a narrow view of what feminism is, and what a feminist does. Women can be their own worst enemy and the in-fighting and backstabbing is disappointing. For reference, read the interview with Naomi Wolf. Why can’t Naomi Wolf be beautiful and groomed and say what she wants? Can you not be glamourous and a feminist? Surely as long as you want equal rights for all anyone can be a feminist, even a man?

The ones I really related to are Jill Tweedie stating that ‘One of the most crippling aspects of being a women- and an Englishwomen to boot- is the continual and largely unconscious compulsion to be nice’. Too true, even for a Scot, and as relevant today as it was in the 1970s. This book is food for the brain; is housework slavery?, should women be paid for it?, the attack on Margaret Thatcher for not helping her fellow women – a very good point- she filled her cabinet with men and seemed to dislike other women. This book is essential reading, I recommend it to everyone.

Some of the book is uncomfortable reading, like when the issue of rape being used as a weapon of war is raised. But that is to the credit of the book. History should never be a comfortable experience, and neither should a revolution.

Women of the Revolution | Kira Cochrane Interview

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I love Kira Cochrane’s writing, so I was very excited to interview her about the new book she has edited: Women of the Revolution: Forty Years of Feminism. Thankfully, her answers made me like her even more.


What was the idea behind the book, Women of the Revolution: Forty Years of feminism?
I was in the office between Christmas and New Year 2010, a time when
it’s always incredibly quiet at work, doing some reading for a piece I
was writing about the first ever women’s liberation conference in the
UK, which was held in 1970. It occurred to me that it would be great
to do something big to celebrate this landmark – forty years of second
wave feminism in the UK – and that we had all the resources necessary
at the Guardian to do that. So I started, that day, to put together a
book made up from our archives, featuring interviews with people like
Germaine Greer, Naomi Wolf, Oprah Winfrey, Nawal El Saadawi, Camille
Paglia and Susie Orbach, and articles on all the most important
feminist issues. Altogether I wanted it to provide an introduction to
the movement for those coming to it fresh, and brilliant, wide-ranging
material for those who have lived and campaigned through it.

How did it come together?
It proceeded with me just trawling through our archive, reading
thousands and thousands of articles until my eyes were sore. Given the
wealth of feminist material the
Guardian has published, it was a massive task, but I really enjoyed
it. (I have come to realise that I’m a total feminist geek!)

What is your favourite article/interview in the book?
Well, like any good parent, I don’t have favourites, and there’s so
much great material: Beth Ditto on how to beat street harassment,
on online sexism, Ariel Levy writing about raunch
culture, Polly Toynbee on Spare Rib magazine, Hadley Freeman on eating
disorders, Marina Hyde on pornography, to name just a few. One
I think is as relevant today as it was when it was published 41 years
ago now, is Jill Tweedie’s piece “Why nice girls finish
last”. In it she writes that women have a “continual and largely
unconscious compulsion to be nice. Nice and kind, nice and fair, nice
and tidy. Nice. Always ready to understand the other point of view.
Always careful not to give a wrong impression”. And she warns against
the feminist movement sinking into a great heaving swamp of niceness.
I think that message is still really important, at a time when women,
as much as ever, are brought up to be
accommodating and unpushy. (Have you ever heard the word pushy used
about a man? How about bossy?).

What do women still need to achieve?
Well, you can break it down into specific issues. Equal pay, economic
equality, a fair sharing of tasks in the home, affordable childcare, political
representation, an end to street harassment, to domestic violence and
rape – and, in the meantime, a higher rape conviction rate and strong
support services for women who experience violence. But I think
we also have to recognise that the problem is structural. We live in
a society where there are hierarchies based on class, race, sexuality,
disability and many other factors. Sex is a key one of those, and if
we could create a much more equal balance of power in general I think
we’d have a society that would function much more happily for everyone.

Do you think feminism is used as a weapon against women, like when a
man doesn’t give up his seat and wants to go dutch, even on the first
date? I have a friend who hates feminism because she says it has been
used to take away men being chivalrous, and we still end up doing the
housework.
I’m pretty happy to see the back of chivalry, because it
was based on the idea of women being the weaker sex. That
doesn’t mean I want doors slammed in my face by the man who’s walking
in front of me – just that whoever reaches the door first will hold it
open, whether it’s me or him. In an equal society, I think men and
women should treat each other equally well. (Also, I’m happy to go
Dutch. I think when one partner pays for everything from the start of
a relationship, unless there’s a really good reason, that sets up a
pretty dodgy power dynamic.)

What can be done to convince women that feminism is still relevant?
Well, I think a large proportion of women are already convinced, and
you can see that in all sorts of ways. There are
the feminist protests and conferences that have taken place over the
past few years, the enormous success of Caitlin Moran’s feminist book
How to be a Woman, the extent to which feminist issues are debated in
the media and online, with women really making their voices heard about
issues that make them angry. For any woman not yet convinced, I
suppose I would just put a few questions to her. Do you
want to live in a country where only one in five MPs – the people who
make the major decisions
regarding our lives – are women? Do you want to be paid
less than your male colleagues for the same work? Do you want to live
in a country where there’s a high chance of you being raped or
sexually assaulted – and a very low chance of your attacker being
convicted on those charges? If not, feminism is for you.

Do you think it is possible for a woman to ‘have it all’?
I think what’s true is that women have made huge strides in the
workplace, but still take care of the lion’s share of tasks at home. I
do think it’s possible for everyone, men and women, to ‘have it
all’, but in order to make that happen there needs to be a real shift
in attitudes towards working hours, so that workers aren’t toiling
incredibly long hours and can have a proper shared family life. That’s
easy to say, and much harder to do. At a time of economic crisis,
especially, it’s very hard for people to feel confident in taking
their foot off the accelerator at work. So I do hope these changes
will happen, but clearly it won’t be overnight.

Women are still sexually objectified to a large degree, what do you
think of Rihanna and Lady Gaga who constantly make music videos
wearing pants and a bra? Is this a bad example? Or an example of a
women being free to do what she wants?
I really don’t like the way that women in the public eye, in their
twenties, are criticised for being ‘bad role models’ for other women
in their twenties. It just seems another stick to beat women with. I
personally think that women should wear exactly what they like – so
long as it IS what they like, that they’re following their own desires
and enjoying themselves. I think if they’re doing that, they set a
great example.

What do you hope the book will achieve?
I hope the book will get people thinking about feminism – thinking
about all the women who have fought for our rights in the past, and all that
we still have to do.

How much more do women have to achieve to be equal to men?
There’s so much, but I think the important point is that we’re getting
there in the UK. There are obstacles, and really worrying issues (like
the fact that women’s unemployment is at a 25 year high), but over the
course of time we are moving forward. It’s like a friend of mine said,
a few years ago, when there had been some notable setbacks for women:
people can try to keep us down, but it’s not like we’re actually just
going to go back into the kitchen and make them a sandwich.


What is next for you?
More articles, more books, and much more feminist research! I’m really looking
forward to it.

Thank you Kira.

[The review of the book is here.]

First Anniversary of Japan Earthquake and Tsunami.

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Japan mourned today as the first anniversary of the earthquake and tsunami brought Tokyo to a halt.

Today marks a year since the magnitude-9.0 earthquake struck at 2.46pm local time (5.46am GMT) , people all across Japan bowed their heads and observed a minute’s silence. Millions mourned and sirens were sounded in dozens of coastal communities were 15,800 people have been confirmed dead and there are still 3,300 others missing.

The earthquake devastated the country’s north-east coast and also sparked the world’s worst nuclear disaster for 25 years.

The Prime Minister said that Japan would be “reborn as an even better place”. “Our predecessors who brought prosperity to have repeatedly risen up from crises, every time becoming stronger,” he said. “We will stand by the people from the disaster-hit areas and join hands to achieve the historic task of rebuilding.”

Japanese taxpayers are facing an expected cost of $230bn (£145bn) over the next ten years to rebuild cities, towns and villages.

The emperor, empress, prime minister, foreign dignitaries attended a ceremony at the capital’s national theatre alongside hundreds of survivors.

The Latest Greek Bailout – The Worst Decision Possible

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It always happens with politicians, you get ‘compromise’. And it’s exactly what’s happened with the latest Greek bailout. Rather than the much needed bazooka to deal, with the problem we’ve ended up with the usual indecisive and ineffective compromise, which only results in a short term solution.

If politicians had just had the guts to commit a bit more support we might have had a real resolution. As it is Greece is left mired in uncertainty. It is extremely likely a further bailout and/or default will be needed.

Even under the optimistic baseline scenario of the current deal Greece will still be at a debt to GDP ratio of 129% by 2020. That’s 8 years away and still well above the 120% considered unsustainable.

And what reasons are there for thinking the baseline will come true. Greek growth was far worse than expected last year at -6.1%. Greece has never been able to successfully implement the required reforms in the past. If Greece misses its growth targets by just 1%, a scenario which seems highly possible given Greece is expected to grow by a rosy 2.3% in 2014 (despite severe austerity measures), all other factors being equal Greece will have a debt to GDP ratio of 159%. Virtually the same as it has now! And if Greece doesn’t return to growth the consequences don’t bare thinking about. One bad number in the next 8 years would knock everything of course.

This bailout will not offer any confidence for business. The Greek people are already furious. How will they be after another 8 years of severe austerity with no or little progress on debt? Even if they achieve the baseline and get back to 129% debt to GDP they are still left in a dire position.

Once again the policy makers have found the worst option. Short term thinking politicians are pandering to their electorates and only thinking of their upcoming elections.

To set a date for default, take ownership of the problem and leave the Euro would have been a better option for the long term for both Greece and the Euro.

Even better a bigger bailout designed to knock Greek debt to GDP ratio back below 100% would have inspired confidence. Businesses would not be so afraid to invest. Greece might have even been able to sell some of its assets to the private sector for a reasonable price. This was an affordable solution. Unfortunately the German tax payer and others refuse to pay.

At some point either the Germans or the Greeks are going to say enough is enough. NO MORE BAILOUTS. It is likely that Greece will default again and leave the Euro anyway. But instead of doing it now and beginning the recovery we must drag on with the worries of Greece weighing on growth and confidence throughout the whole of Europe.

BRITISH STARS HELPING TO SOLVE THE UKs GROWING GANG CULTURE

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Jaime Winstone, BAFTA winner Adam Deacon, Shortee Blitz, Bashy (AKA Ashley Thomas) and Clement Marfo Join Ex Gang Leaders, Dawn Butler and the Metropolitan Police in the ‘Fight Against Gang Crime’

Recent studies document over 250 active criminal gangs, with 176 gang rapes (involving 3 or more attackers) reported over the past 2 years*. Six months after the ‘London Riots’ – in which ten per cent of the youths charged were girls – the national government have announced that they will invest £1.2m of funding to help girls involved with gangs, who may be have been violently or sexually abused by male members.

However, former girl gang leader and youth charity owner, Jenifer Blake and SKET film consultant, Tracy Miller believe that “film and education is the key to tackling gang violence”. Tracey and Jenifer will be hosting a school ‘film screening’ tour alongside high profile guests, including actress BAFTA winner Adam Deacon, Bashy (AKA Ashley Thomas), Jaime Winstone, KISS FM DJ Shortee Blitz and music artist Clement Marfo to educate young people about the risks of being involved in a gang. There will be a screening of clips from the film SKET, starring Ashley Walters (about girl gang culture), followed by a Q&A and debate session at Westminster Kingsway College, on Thursday 8th March. Dawn Butler, representatives from The Metropolitan Police and The Home Office will also take part in the event.

Sket – Tackling Gang Crime Event

Jenifer Blake’s reign of terror lasted from the age of 13 to 37 and included robberies at knifepoint and drug dealing. Jennifer, who once hated the police and abused them on a regular basis, now has a Metropolitan badge and works closely with them as a liaison between gangs on our London Streets, and helped to keep the community safe during the Hackney Riots.

Now in her thirties, Tracey Miller’s biological father was a convicted pedophile and her mother was a manic-depressive who took knives out on anyone that upset her. To deal with all the hurt andpain in her home life, Tracey soon became a gang leader to protect herself.Tracey was shot in the Brixton riots and stabbed a man several time for disrespecting her.

The purpose of the event is to educate young people about the risks of being involved in a gang and the consequences. The film SKET will be used as a discussion point to raise awareness of the risks and consequences of being involved in a gang and as an interactive tool to generate debate around this.

Schedule of Events, Thurday 8th March:

9.30 am – Guests to arrive and be seated

10.00 am – Clips to be shown

10.30 am – Q&A begins

11 – 11.30 am – Media Photocall

* Women’s Resource Centre 2010

JOIN COSMOPOLITAN’S EDITOR, LOUISE COURT AS SHE DEBATES: ‘I AM A FEMINIST – CAN I VAJAZZLE?’

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JOIN COSMOPOLITAN’S EDITOR, LOUISE COURT AS SHE DEBATES:

‘I AM A FEMINIST – CAN I VAJAZZLE?’

WITH DAWN PORTER & KATE SMURTHWAITE AT SOUTHBANK CENTRE’S WOW – WOMEN OF THE WORLD FESTIVAL

Cosmopolitan, the magazine for smart, spirited young women has teamed up with Southbank Centre’s WOW – Women of the World Festival, to host a debate on the hot topic of modern-day feminism. The event is part of a series planned to support the magazine’s ‘F Word’ campaign.

WOW – Women of the World festival is Southbank Centre’s annual festival to recognise, celebrate and promote women and runs from Wednesday 7 March to Sunday 11 March across the Southbank Centre site. On Saturday 10th March, Louise Court, Cosmopolitan’s Editor, writer and broadcaster, Dawn Porter, comedian and feminist activist, Kate Smurthwaite and Dr Kristin Aune will battle out the following question – ‘I am a Feminist – Can I Vajazzle?’. The debate will be chaired by columnist and author, India Knight.

This debate is part of Cosmopolitan’s ‘F Word’ campaign, launched to celebrate its birthday issue, on sale 1st March. The campaign aims to shine light on the myths and outdated stereotypes surrounding feminism and starts deliberately with this controversial subject to explore the multiple aspects of women’s relationship with feminism in the 21st century.

Cosmopolitan believe there has never been a more important time to be a feminist, with the world we live in today still far from equal for men and women. The first thing the magazine wants to achieve in its bid for equality is equal pay for men and women doing the same jobs. The magazine is campaigning for the government to get tough now on equal pay, by making it mandatory for companies who employ 250 people or more to carry out a public, annual equal-pay audit. If you want to fight for your right for equal pay in the workplace, sign the Cosmopolitan Equal Pay petition now at www.cosmopolitan.co.uk/equalpay.

To book tickets to for the Cosmopolitan debate – ‘I am a Feminist – Can I Vajazzle?’:

Saturday 10th March, from 3pm – 4pm, Southbank Centre, Belvedere Road, London, SE1 8XX. Tickets cost £30 for a weekend pass (£15 concessions) and £12 for a day pass (£6 concessions), and are available from the Southbank Centre Ticket Office: 0844 847 9910 / www.southbankcentre.co.uk/wow

NB – Some events have a limited capacity and entry is on a first-come first-served basis.

Frost Mag is supporting Cosmopolitan magazine's F-Word campaign.

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COSMOPOLITAN Launches the ‘F-word’ campaign. Cosmopolitian is launching its campiagn on International Women’s Day, and Frost Magazine is supporting them.

This International Women’s Day (8th March) Cosmopolitan will be launching its ‘F Word’ campaign, a series of initiatives championing women – and men – to stand up and be counted and get what they deserve; equality in all aspects of their lives. The ‘F word’ has been created by Cosmopolitan to highlight the fact there has never been a more important time to be a feminist. The magazine has teamed up with some of the UK’s biggest stars who all support the campaign, including Annie Lennox, Jameela Jamil, Emma Bunton and Professor Green.

Miquita Oliver:

“I’ve gone up and down in weight and I’ve never been very glamorous so I’ve always used what I have which is my personality. It would mean so much to me if there were girls who watched me on the telly and thought ‘Oh actually I can just be a funny cool person.’ It’s important to push your personality rather than wearing ‘the right’ skinny jeans.”

Emma Willis:

“People think of it as a dirty word but being a feminist doesn’t mean you’re loud and lairy. You can still be feminine and be a feminist.”

According to the Fawcett Society, which campaigns for equality between men and women, men are currently getting paid almost 15% more than females, rising to 55% in the banking sector. It has also revealed that this is likely to widen, due to public sector job cuts, which are historically female dominated.

Cosmopolitan, the magazine for smart spirited women, believes it is time to take action. It wants the government to get tough now on equal pay, by making it mandatory for companies who employ 250 people or more to carry out a public, annual equal-pay audit – this was due to become law under the last government, but was shelved in 2012 in favour of making these audits voluntary.

The magazine is calling all British women to fight for their right to an equal pay packet by signing the Cosmopolitan Equal Pay petition at www.cosmopolitan.co.uk/equalpay. Cosmo is hoping to gather 100,000 signatures and plans to present the petition to David Cameron later in the year.

Louise Court, Cosmopolitan, Editor, said: “When we heard that the pay gap looked likely to widen in 2012 we felt it was time to stand up and make a difference for women in the UK today. Many women don’t even realise that they could be doing exactly the same job as their male colleagues and not being paid the same wage – it’s time to highlight this unfairness and make positive changes!”

According to a poll of Cosmopolitan readers, 58% would not describe themselves as being a feminist. However, Cosmopolitan believes that there has never been a more important time to be a feminist with inequality between the sexes at an all time high. “It’s time to grab back the word ‘feminism’. It’s a perfectly good word. But we need to simplify it. It’s about equal rights; that’s all. It’s not about being enemies of men.” Says Annie Lennox of the Cosmopolitan F Word campaign.